Erdene Resource Development (TSX:ERD, OTCPink:ERDCF) has launched its campaign on the Investing News Network’s resource channel.
Erdene Resources is a gold exploration and development company focused on rapidly advancing the high-grade, open-pit Bayan Khundii gold project to production. The project is located in the Gobi Desert of southwestern Mongolia, where the company has established a new gold district through exploration. Erdene Resources now controls three exploration licenses and three mining licenses totaling 17,861 hectares.
Erdene Resources announced the results of an independent Feasibility Study for the Bayan Khundii gold project in July of 2020. The study considered an after-tax Net Present Value at a 5 percent discount rate and a US$1,400/oz gold price of US$100 million with an Internal Rate of Return (IRR) of 42 percent. At a US$2,000/oz gold price, the project’s after-tax NPV 5 percent is approximately US$297 million. The feasibility study considered the potential for an open-pit mine at Bayan Khundii.
Erdene Resource Development’s company highlights include the following:
- High-grade Bayan Khundii Project: Average head grade of 3.7 g/t gold is among the highest grade open-pit developments globally, with first production expected in 2022.
- Resource Expansion: The Bayan Khundii gold resource¹ includes 520,700 ounces of 3.16 g/t gold Measured and Indicated (M&I)² and 102,800 ounces of Inferred resources at 3.68 g/t gold. Within the M&I resource, a proven and probable open-pit reserve totals 409,000 ounces at 3.7 g/t, providing significant potential growth of reserves with the development of the remaining M&I and Inferred resources.
- Erdene’s Altan Nar gold resource includes 318,000 ounces of 2.0 g/t gold Indicated and 186,000 ounces of Inferred at 1.7 g/t gold in addition to significant silver and base metal content.
- Discovery Potential: Erdene’s properties are situated in an unexplored portion of the Central Asia Orogenic Belt, which hosts some of the world’s largest gold and copper deposits. Erdene’s technical team has established three greenfield gold and copper deposits — Zuun Mod in 2011, Altan Nar in 2015 and Bayan Khundii in 2018.
- Experienced Management Team and Board: The company’s management team has operated in Mongolia for over 20 years. Its Board includes members with significant expertise in exploration, development, construction, stakeholder relations and corporate finance.
- Strong Shareholder Base: Recent $15 Million strategic investment by Eric Sprott, significant investment by the European Bank for Reconstruction and Development and substantial ownership by insiders. Additionally, Mongolia’s largest foreign investor is financier for the project.